NYSE:FLS

Stock Analysis Report

Executive Summary

Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.

Risks

  • Flowserve has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Flowserve's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

NYSE:FLS

2.9%

US Machinery

2.1%

US Market


1 Year Return

-18.9%

NYSE:FLS

-6.0%

US Machinery

-0.04%

US Market

FLS underperformed the Machinery industry which returned -6.6% over the past year.

FLS underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

FLSIndustryMarket
7 Day0.3%2.9%2.1%
30 Day-20.5%-9.4%-3.2%
90 Day-14.1%-0.8%2.8%
1 Year-17.5%-18.9%-4.1%-6.0%2.2%-0.04%
3 Year-9.6%-14.1%37.0%28.1%41.5%32.3%
5 Year-40.5%-45.0%37.9%20.8%55.0%37.8%

Price Volatility Vs. Market

How volatile is Flowserve's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Flowserve undervalued based on future cash flows and its price relative to the stock market?

26.48x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Flowserve's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Flowserve's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Flowserve is overvalued based on earnings compared to the US Machinery industry average.

Flowserve is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Flowserve is poor value based on expected growth next year.


Price Based on Value of Assets

Flowserve is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Flowserve expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Flowserve's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Flowserve's earnings are expected to grow significantly at over 20% yearly.

Flowserve's revenue growth is positive but not above the United States of America market average.

Flowserve's earnings growth is expected to exceed the United States of America market average.

Flowserve's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Flowserve is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Flowserve performed over the past 5 years?

-42.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Flowserve's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Flowserve has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Flowserve has become profitable in the last year making it difficult to compare the US Machinery industry average.


Return on Equity

Flowserve has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Flowserve used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Flowserve's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Flowserve's financial position?


Financial Position Analysis

Flowserve is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Flowserve's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Flowserve's level of debt (82.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (61.4% vs 82.8% today).

Debt is well covered by operating cash flow (20.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

What is Flowserve's current dividend yield, its reliability and sustainability?

1.94%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Flowserve's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Flowserve's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


Next Steps

Management

What is the CEO of Flowserve's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Robert Rowe (48yo)

2.3yrs

Tenure

US$8,702,469

Compensation

Mr. Robert Scott Rowe has been Chief Executive Officer and President of Flowserve Corporation since April 1, 2017. Mr. Rowe served as the President of Cameron International Corporation since October 1, 201 ...


CEO Compensation Analysis

Robert's remuneration is about average for companies of similar size in United States of America.

Robert's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

51yo

Average Age

The tenure for the Flowserve management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

58.5yo

Average Age

The tenure for the Flowserve board of directors is about average.


Insider Trading

Flowserve individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$284,15207 Jun 19
John Lenander
EntityIndividual
Shares5,761
Max PriceUS$49.32
SellUS$305,09518 Mar 19
John Lenander
EntityIndividual
Shares6,818
Max PriceUS$44.75

Ownership Breakdown


Management Team

  • Jay Roueche (52yo)

    VP of Investor Relations & Treasurer

    • Tenure: 6.8yrs
    • Compensation: US$930.59k
  • David Wilson (50yo)

    President of Pumps Division

    • Tenure: 1.1yrs
    • Compensation: US$2.08m
  • Robert Rowe (48yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$8.70m
  • Lee Eckert (52yo)

    Senior VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$2.73m
  • Elizabeth Burger (48yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.67m
  • Keith Gillespie (53yo)

    Senior VP & Chief Sales Officer

    • Tenure: 2.8yrs
    • Compensation: US$2.10m
  • Scott Sullivan

    Chief Ethics & Compliance Officer & VP

    • Tenure: 4.3yrs
  • Kirk Wilson (52yo)

    President of Flow Control Division

    • Tenure: 3.9yrs
  • Lanesha Minnix (44yo)

    Senior VP

    • Tenure: 1.2yrs
  • Tauseef Salma

    Vice President of Marketing & Technology

    • Tenure: 0.5yrs

Board Members

  • Rick Mills (72yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$239.99k
  • John Garrison (58yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$25.00k
  • Roger Fix (66yo)

    Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: US$349.99k
  • Gayla Delly (59yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$262.99k
  • John Friedery (63yo)

    Independent Director

    • Tenure: 12.0yrs
    • Compensation: US$234.99k
  • Joe Harlan (60yo)

    Independent Director

    • Tenure: 12.0yrs
    • Compensation: US$224.99k
  • Dave Roberts (58yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$239.99k
  • Ruby Chandy (57yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$239.99k
  • Michael McMurray (54yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$25.00k
  • Robert Rowe (48yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$8.70m

Company Information

Flowserve Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Flowserve Corporation
  • Ticker: FLS
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$5.483b
  • Shares outstanding: 131.17m
  • Website: https://www.flowserve.com

Number of Employees


Location

  • Flowserve Corporation
  • 5215 North O'Connor Boulevard
  • Suite 2300
  • Irving
  • Texas
  • 75039
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLSNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1980
FWVDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
0IQELSE (London Stock Exchange)YesCommon SharesGBUSDJan 1980
FLS *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1980

Biography

Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:36
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.